Mumbai, Jun 18 (IANS): The Reserve Bank of India will conduct the conversion or switch of Government of India (GoI) securities, through auction, on June 21.

The RBI has, from April 22, 2019, started conducting the auction for conversion of GoI securities on the third Monday of every month.

As per the method, bidding in the auction implies that the market participants agree to sell the source security or securities to the GoI and simultaneously agree to buy the destination security from the GoI at their respective quoted prices.

"The Government of India announces the conversion/switch of its securities through an auction for an aggregate amount of Rs 10,000 crore (face value)," RBI said in a statement.

According to the statement, market participants are required to place their bids in 'e-Kuber' giving the amount of the source security and the price of the source and destination security expressed up to two decimal places.

"The auction would be a multiple-price based auction...."

"Bids for the auction should be submitted in electronic format on the 'Reserve Bank of India Core Banking Solution' (e-Kuber) system on June 21, 2021 between 10.30 a.m. to 11.30 a.m.

"The result of the auction will be announced on the same day and settlement will take place on June 22, 2021 (Tuesday)."